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European Liquidity Update

Submitted by Tyler Durden on 09/22/2011 11:14 -0400

While bank CEOs across Europe (and the US) continue to deny-deny-deny that they have any liquidity issues, the markets seem to be calling their bluff (once bitten twice shy?). EURIBOR-OIS has just reached back to March 2009 levels, 3 month EUR-USD basis swap is almost back to late 2008 lows at -106bps, and while for once the ECB's liquidity facility was not taken advantage of in size (only EUR179mm), counterparty risk is clearly on the mind of traders as CDS curves invert and Senior Financials jump 15bps to 304bps (and Subordinated +36 to 538bps!).

Chart: Bloomberg

And LIBOR components continue to disperse and rise - though who is actually lending to whom over there is anyone's guess...

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Thu, 09/22/2011 - 11:16 | 1697077 GeneMarchbanks

They've officially formed a suicide cult. Let the domineos begin!

Thu, 09/22/2011 - 11:20 | 1697108 lolmao500

Suicide club... funny little Japanese movie.

Thu, 09/22/2011 - 11:16 | 1697082 Cognitive Dissonance

Liar liar, pants on fire.

Thu, 09/22/2011 - 11:19 | 1697103 GeneMarchbanks

Edged you out by a fantasecond:)

Thu, 09/22/2011 - 11:45 | 1697248 Cognitive Dissonance

If we age grade the curve I beat you by a country mile. :>)

Thu, 09/22/2011 - 11:17 | 1697090 PicassoInActions

can some1 in plain english explain please.Are we just fucked or we fucked big?

Thu, 09/22/2011 - 11:25 | 1697121 CvlDobd

Is it not obvious?

Hold on let me sharpen my Crayolas.

Charts are easy to read. Think of bad times (2008 and 2009) and see what happened on the charts at that time. Then think of good (I use the term loosely) times like late 09 and 2010 and see what the charts did then. Stay with me here. Look at the current time and see which one it mostly resembles. Care to guess?

Thu, 09/22/2011 - 11:24 | 1697123 Alienated Serf

we are fucked but when you look at the 3yr chart, you can see we aren't anywhere near 2008 levels yet. http://www.bloomberg.com/apps/quote?ticker=.LOIS3:IND

they will just hand out free money by the trillions this time.

Thu, 09/22/2011 - 11:18 | 1697094 GovernmentMule

Time to rearrange the deck chairs...

Thu, 09/22/2011 - 11:23 | 1697122 RunningMan

Put my chair closer to the band please.

Thu, 09/22/2011 - 11:18 | 1697095 RunningMan

Can't we all just get along?

Thu, 09/22/2011 - 11:22 | 1697118 dick cheneys ghost

Tyler, What about the $700 Trillion derivitives bomb.........is this meltdown a result of that bomb or does that bomb blow up afterwards?...............

thanks

Thu, 09/22/2011 - 11:30 | 1697148 Withdrawn Sanction

We have no liquidity or solvency issues. --Dick Fuld

Thu, 09/22/2011 - 11:31 | 1697150 rambler6421

I smell a False Flag Terror Attack coming our way.

Thu, 09/22/2011 - 11:35 | 1697169 sabra1

you, you mean, janet napolitano running around NYC naked?

Thu, 09/22/2011 - 11:39 | 1697195 JohnG

AAAAAAAAAAAAGGGGHHHHHHH! My eyes! I've been stricken blind!!!!

(Please turn me towards the bar.)

Thu, 09/22/2011 - 11:51 | 1697288 youngman

Yes yes yes...banks runith over......with Love.....any cams in front of banks showing the lines to get their money yet???? coming soon....I bet there is one with the Feds right now...or does Bernanke just Tweet it now...

European Liquidity Update

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